ABBOTT LABORATORIES W W W A B B

ABBOTT LABORATORIES W W W. A B B O T T. C O M

Abbott Laboratories Indiana University §Introduction §Abbott Overview §Financial Professional Development Program (FPDP) §Question and Answer

Abbott Laboratories At a Glance § Headquartered in North Chicago, Illinois – a suburban community approximately 30 miles from Chicago. § A diversified healthcare company that discovers, develops, and manufactures and markets innovative products and services that span the continuum of care – from prevention and diagnosis to treatment and cure.

Abbott Laboratories At a Glance 72, 000 Employees in more than 130 Countries § Fortune 500 Ranking n 100 in Revenues u 29 for Minorities u One of the “Most Admired Companies” every year since 1984. § 48 th among the Top 500 American Companies – Forbes Magazine § Five Star Ratings in all categories of u Princeton Review’s America’s Top Internships Number 3 on Best Company Benefits List – Money Magazine § Top 10 Companies for Working Mothers – Working Mothers Magazine §

Abbott Laboratories At a Glance n § § $19. 7 Billion in Sales (2002) 61% Domestic 39% International $26. 7 Billion total assets 7. 7 % E. P. S. compound growth – last 10 years

Abbott Laboratories In August 2003, Abbott announced that it would spin off as a separate company its hospital products business. The new company will have sales of $2. 4 billion. Spin off will allow the company to more aggressively focus on the development and sale of products for the hospital market. Completion of the spin off was April 2004. The new company is Hospira.

Health Care Industry Long-Term Business Trends n OPPORTUNITIES u Aging Population u Higher Discretionary Incomes u Scientific Discoveries u “Quality of Life” Demand n RISKS u Price Controls u Regulatory Requirements u Drug Development Costs

Abbott Laboratories Sales Growth Compound Growth Rate 8. 9%

Abbott Laboratories Earnings Per Share – Basic Compound Growth Rate 7. 7% ($/Share)

Abbott Laboratories R&D Spending Compound Growth Rate 7. 0% Spending in Millions

Abbott Laboratories Stock Price Compounded Growth 12. 1% $/Share

Abbott Strategy n n Internal Research and Development Market Expansion External Collaborations Acquisitions

Abbott Laboratories Pharma Product Group n n § Pharmaceutical Products Division Abbott International Global Pharmaceutical Research & Development Global Pharmaceutical Operations TAP Medical Products Group n n n n Abbott Diagnostics i-STAT Point of Care Abbott Diabetes Care Abbott Molecular Diagnostics Ross Products Spinal Concepts Abbott Vascular Devices Animal Health

Pharmaceutical Products AIDS/Anti-Viral § Norvir – Protease inhibitor - HIV § Kaletra – Protease inhibitor – HIV Anesthetics § Ultane – inhalation anesthetic Anti-Infective § Biaxin – Macrolide – respiratory infection § Omnicef – oral cephalosporin – bronchitis, ear infection Cardiovascular § Tricor – cholesterol and triglyceride reducing agent

Pharmaceutical Products Gastrointestinal § Prevacid – TAP – gastroesophegeal reflux (GERD) Immunology § Humira – rheumatoid arthritis § Gengraf – organ transplant immunosuppressive therapy Metabolic Disease § Meridia – obesity management § Synthroid – treatment of hypothyroidism Neuroscience and Pain Management § Depakote – anitepileptic, bipolar disorder, migraines

Pharmaceutical Products Pediatric and Specialty Pharmaceuticals § Survanta – premature newborn respiratory distress syndrome § Synagis – Monoclonal antibody for treatment of respiratory sy infection (RSV) Renal Disease § Zemplar – secondary hyperarathyroidism Urology / Reproductive Health § Flomax – Alpha blocker – BPH § Hytrin – alpha blocker – BPH § Lupron – synthetic hormone – prostate cancer, endometriosis

Medical Products Diabetes Care § Blood glucose monitoring through Thera. Sense and Medi. Sense Products Hematology § Cell-Dyn line of automated hematology analysis Immunoassay and Clinical Chemistry § PRISM – high volume analyzers screening donated blood for multiple viral infections § Aeroset / C 8000 – High and medium volume clinical chemistry analyzers § Architect – modular immunoassay analyzers § Ax. Sym – automated immunoassay analyzer with continuous access and STAT capabilities

Medical Products Molecular Diagnostics § Path Vysion HER-2 – DNA test detecting HER-2 / neu gene in breast cancer patients § Uro. Vysion – DNA test for monitoring recurrence of bladder cancer § Viro Seq HIV-1 – Genotyping System for identification of drug resistant HIV-1 mutations Nutritional Products § Adult Nutritionals § Ensure – Balance & Nutrition § Glucerna – Diabetes § Jevity – Tube Feeding § Prosure – Weight gain in cancer patients § Zone Perfect – Portable nutritional products

Medical Products Pediatrics Nutritionals § Similac – Infant formula § Gain and Grow – follow-on formulas for age 6 months to 7 years § Isomil – Soy based infant formula § Pedia. Sure – Balanced nutritional formula for ages 1 to 10 years. § Pedialyte – Oral electrolyte maintenance solution for quick fluid replacement Abbott Vascular Devices § Portfolio of coronary and endovascular technologies, vessel closure devices and pharmaceuticals used in the treatment of cardiovascular conditions.

Medical Products Spinal Concepts § Unique product portfolio with technologically advanced devices for cervical, thoracic and lumbar spine. Animal Health § Perioperative health care for the veterinary market. Products include anesthetic and wound care products; a complete line for I. V. fluid therapy; and other veterinary critical care products

New Product Pipeline Launches in 2002, 2003 & 2004 n n n n Closer S – Vessel closure PRISM (US) – Automated blood bank screening Humira – Rheumatoid arthritis Depakote ER – Once a day for Bipolar Advance line of infant nutrition w/DHA & ARA providing formula more consistent with mother’s milk Ora Quick – Rapid HIV-1 Antibody test Dexamet – Stent system Life Care PCE 3 Infusion system- Analgesic device system

New Product Pipeline Launches Anticipated n n n Humira – new indications including Crohn’s disease Psoriasis, Psoriatic arthritis ABT-773 – various cancer indications ABT-578 – drug eluded stent Vicodin-CR, Dilauded-CR – pain management ABT-627 (Atrusentan) – Prostate cancer Xinlay - Oncology

Strategic Initiatives – 2003/2004 Acquisitions n n n n Woodside – Nausea/vomiting Jomed N. V - Devices for treatment of heart and surrounding arteries Integrated Vascular Systems – Vessel closure devices Spinal Concepts – Devices for spinal surgery Zone Perfect Nutrition Co. i-STAT – Point of care diagnostics Thera. Sense, Inc. – Blood glucose monitoring Alliances n n n Medtronics – stent delivery systems Artus Gm. GH – SARS diagnostics test Luminex – invitro diagnostics

Financial Professional Development Program (FPDP) n MISSION - To develop u Financial skills u Knowledge of Abbott divisions and operating environments u Superior contributors u Future managers prepared for a variety of positions l not trained for a specific discipline l

Abbott Laboratories Financial Training Program WHAT IS IT? n n Two year program 5 or 6 full-time assignments/4 to 6 months long u Real contributor roles u Important to operation of business Hands-on experience u At either corporate, division, or operating levels u In either FP&A, cost, or reporting Structured Mentorship

Mentoring n Program Manager u Division n V. P. or Controller Level Assignment Manager

Strengths of FPDP Program n n Cross Functional Exposure (Non-Finance) Off-Site Assignments u Domestic u International

Cross Functional Exposure (Non- Finance) n n n Engineering, Marketing & Sales Improves Communication, Interpersonal, Leadership and Teamwork Skills Increases Business Knowledge and Opportunity to Impact Operating Decisions

Non-Technical Development n n n n Teamwork Creativity Process Analysis Communication/Interpersonal Leadership Project Management Conceptual Ability

What Does it Train You For n n n Controllership Financial Reporting Strategic Planning Line Financial Management Business Advisor and Partner Business Systems Development

Career Development Courses n n n n n Time Management Interpersonal Communications Business Writing Problem Solving Good Business Practices Cost Accounting Presentation Skills Meeting Facilitation CPA/CMA Review Courses

FPDP Assignment Types Cost Acct. General Accounting FP&A

Off- Site Assignments Domestic Boston Redwood City Columbus Los Angeles Dallas

Off- Site Assignments International What experiences do you gain? n International Finance n Cultural Experience

Recent Non U. S. Assignments n Germany u Financial Planning & Analysis u Cost Accounting n Ireland u Cost n Accounting United Kingdom u Financial n Switzerland u Financial n Planning & Analysis Puerto Rico u General n Planning & Analysis Accounting Reporting Pakistan u Financial Reporting & Analysis

Abbott “Fringe” Benefits n FPDP Events: u Game Keepers u Golf Outings u Cub Games n Abbott Sports Leagues n On-site Recreation Facility

Abbott & Work Life Solutions Our future success is directly related to the quality/dedication of out employees n n n Child care center Clara Abbott Foundation – Family crisis, natural disasters, medical crisis, educational grants Flexible work arrangement Recreational and sports activities Wellness Programs – Stress management, nutrition, on site health screening

Graduation Opportunities n n n Location: Domestic / International Divisions: Pharma, Diagnostics, Hospital Products, Corporate… Choice of Discipline: u General Accounting/Reporting u Manufacturing Accounting u Financial Planning & Analysis u Treasury

Developing Future Financial Managers Capital Investment Analysis Treasury Ops. Risk Management Tax Accounting General Accounting Consolidations & Reporting Cost/ Manufacturing Accounting Financial Budgeting, Planning & Analysis International Accounting Information Systems Acquisitions and Mergers

Where are they now? Kevin Dolan Controller TAP Pharmaceuticals 1981 Cathy Hamilton Assistant Controller Hospira 1986 Lori Carlson Treasurer Hospira 1983 FPDP Graduates John Poulos Div. Vice Pres. , Licensing & Acquisitions AI 1980 Stafford O'Kelly Vice President Latin America & Canada 1985 Jenny Dart Mgr Portfolio Analysis PPD 1993 Bill Chase Controller, AI 1991

Selection Criteria n Technical Skills n Leadership Skills n Interpersonal Skills n Organizational and Planning Skills n Interest in Progressive Management Career in a Highly Successful, International Healthcare Company

Reasons for Choosing Abbott Laboratories n n n Strong Financial Performance and Opportunity for Career Growth Variety of Assignments & Future Opportunities Exposure to Upper Management Diverse and Growing Industry with Global Presence Rewarding - Abbott’s Products Enhance or Save Lives

Abbott’s Sales in 2003 were? A. B. C. D. 40. 2 Billion 19. 7 Billion 20. 6 Million 300. 7 Million

Approximately Where is Abbott’s Stock Trading? A. $25 B. $45 C. $70 D. $95

Where is Abbott located? A. B. C. D. Long Grove, IL North Chicago, IL Kenosha, WI Oak Brook, IL

What Team Will Win the Big 10 Football Title in 2004? A. B. C. D. Indiana University hey…. you gotta keep the faith……